Cost data relating to the single product produced by the Jones Company are given below: The Jones Company uses the absorption costing approach to cost-plus pricing described in the text with a desired markup of 60%.If the company plans to produce and sell 20,000 units each year,the selling price per unit would be:
A)$32.00
B)$41.60
C)$43.20
D)$36.00

Question

Cost data relating to the single product produced by the Jones Company are given below:  The Jones Company uses the absorption costing approach to cost-plus pricing described in the text with a desired markup of 60%.If the company plans to produce and sell 20,000 units each year,the selling price per unit would be:
A)$32.00 
B)$41.60 
C)$43.20 
D)$36.00

Quizplus · Accepted Answer

Unit Product Cost:
 11eaaee8_66d9_642b_933a_7383ffca4713_TB5186_00 * $7.00 = $140,000 F1F1F1S1F1F1F10 20,000
Selling price = $26.00 + (60% F1F1F1S1F1F1F10 $26.00) = $41.60

Cost Data Relating to the Single Product Produced by the Jones